PORTLAND, Ore. (KATU) — The Multnomah County Board of Commissioners voted Thursday on how to respond to a major budget shortfall in its homeless services programs after losing roughly $28 million in state funding. The cut, county officials said, stems from the state’s own loss of federal funds that support local homelessness efforts.
The decision comes as Multnomah County continues to struggle with a growing homelessness crisis. Commissioner Meghan Moyer said the system is already under immense pressure:
“We know right now that we’re having about 1,400 new people a month being identified as experiencing homelessness. And right now our system is able to help 1,100 exit, which means every month 300 new individuals are experiencing homelessness.”
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In a 3-2 vote, the board approved a plan that restores about $20 million of the lost funding through a combination of cost-cutting and financial adjustments. Commissioners Julia Brim-Edwards and Meghan Moyer voted against the plan, expressing concern about the long-term consequences.
What the plan includes
The county’s strategy involves several key measures:
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Halting the expansion of the Cook Plaza Project, a planned homeless shelter in Gresham, saving about $6.4 million.
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Borrowing $4.9 million from next year’s anticipated state funding.
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Developing a new shelter model that uses motel rooms instead of building new facilities, reducing operating costs.
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Tapping reserve funds originally allocated through a Metro Ballot Measure that supports affordable and supportive housing.
These adjustments prevent immediate shelter closures but will still force reductions in some housing assistance programs.
Divided opinions on borrowing
Both Moyer and Brim-Edwards opposed the decision to borrow from next year’s budget, warning it would only postpone the financial strain.
“The proposal that passed took $3 million from next year and put it into this year,” Moyer said. “That really makes our hole even bigger.”
Brim-Edwards echoed that concern, calling the move shortsighted:
“The strategy that was put forth by the chair borrows money from next year to fill this year’s hole, just creating a bigger cliff next year.”
Chair defends approach
Board Chair Jessica Vega Pederson defended the plan as a necessary step to preserve critical resources, especially existing shelter beds.
“One thing that our community can agree on is that it doesn’t make sense if somebody’s currently housed to take away those resources that would end them up on the streets,” Pederson said.
Brim-Edwards also criticized the timing of the adjustments, saying the board should have addressed the issue months earlier, when the legislature finalized the state budget in July. She argued that waiting until October made it harder for service providers to adapt.
Pederson responded in a statement, explaining that state funding figures often take months to finalize after the legislative session ends:
“It takes some time for County departments to have finalized budget numbers from the state and to understand the full impacts of these figures,” she said. “Because of the magnitude of the budget impacts to our homelessness response system, it was important for us to have several public discussions about the difficult choices before the board.”
Balancing short-term survival with long-term goals
Commissioner Shannon Singleton, who voted for the plan, emphasized that while the cuts are painful, the county must focus on helping people move from shelters into stable housing.
“While I know it’s hard for people to understand that that may mean we have to close some shelters, I also think people understand that we don’t want to just warehouse people in shelters,” Singleton said. “We have to have pathways out of that into housing.”
Despite the backfill plan, the county still faces an $8 million shortfall that has not yet been addressed. Officials say discussions will continue in the coming weeks to determine how to close that remaining gap.
The funding loss adds new urgency to Multnomah County’s homelessness crisis, as the number of unhoused residents continues to rise faster than the system’s capacity to respond. For now, the approved plan prevents the most severe cuts — but next year’s financial outlook remains uncertain.
